You are on page 1of 37

Jan-2015

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Transportation Configuration
Transportation Management covers the complete transportation process: create, execute, consolidate, and monitor
shipments.
With mySAP ERP, you can maintain high levels of customer satisfaction, improve capital efficiency with better productivity
in logistics, and reduce costs by lowering inventory levels and consolidating shipments through support of the following
business activities:
Create optimized transportation plans, execute plans, and monitor shipments to deliver products on time and on budget.
Apply flexible options for consolidating deliveries and orders into shipments, including rule-based automation, manual
consolidation, and collaborative order combination through the Internet.
Manage the multiple processes and reports required for foreign trade.

Transportation planning - Optimize shipments; assign carriers to shipments, and tender shipments to assigned
carriers. You can now carry out transportation planning and shipment completion using a new organizational unit, the
transportation planning point. Basically, the transportation planning point consists of a group of employees responsible for
organizing transportation activities. Each shipment is assigned to a specific transportation planning point for transportation
planning and shipment completion. You must define the various transportation planning points used in your organization in
Customizing for Corporate Structure before they can be used to perform transportation functions. You can define this
organizational unit according to your companys needs, for example, according to geographical location or mode of
transport.

Transportation execution - Select carriers, calculate freight costs, settle shipment costs, and print documents.
Use denied-party and embargo lists when shipping internationally.

Freight costing - Calculate and settle freight costs based on actual shipments and current rates, and use this
information to verify invoices.
Incoming shipments in Materials Management based on purchase orders and shipping notifications
Outbound shipments in Sales and Distribution based on sales orders and deliveries

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 2

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Terms used transportation module


There are various terms and terminologies associated with the transportation module with which one needs to be
familiar

Transportation Planning Point.

Shipping Type.

Route.

Shipment Type.
The shipment type contains all the important control features for a shipment, such as the number range, whether
the shipment is inbound or outbound, how leg determination is performed, and which leg indicator has been set
for a shipment of this type. You can also enter a selection variant for the shipment type. The values defined in the
variant appear on the selection screen when you create a shipment document of this type.
The system supports the following shipment types:
Individual shipment
Collective shipment
Transportation chain
Individual shipment

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 3

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


An individual shipment includes
One or more deliveries
One point of departure
One destination
One mode of transport
Collective shipment
A collective (or milk-run) shipment includes
One or more deliveries
Several points of departure
Several destinations
One mode of transport
Transportation chain
A transportation chain is useful if you are dealing with deliveries that will be transported using multiple modes of
transportation (and are thus processed by different departments at the transportation planning point).
Transportation Chain

Shipping Type Procedure Group.

Shipment Cost Type.

Item Category Shipment Cost.

Item Determination Procedure Group.

Pricing Procedure for Shipment Cost.


The shipping document is the central element of transportation planning and shipment completion. It contains all
the information necessary for carrying out transportation.
shipment documents to:
Combine deliveries into one inbound or outbound shipment

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 4

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


Specify shipment stages
Legs
Border crossing points
load transfer points
Assign goods to handling units
Assign service agents
Specify planned transportation deadlines
Record actual transportation deadlines
Specify output required for transportation (such as shipping papers or EDI messages)
Define transport-relevant texts
Basic Transport Contract Terms (INCOTERMS)
The meaning of trade terms vary from country to country. To avoid confusion, standard terms called Inco terms
have been derived & published by the International Chamber of Commerce (ICC) to make the terms of sale clear
and precise. Inco terms provide a set of international rules for the interpretation of the most commonly used
trade terms between buyer and seller, in foreign trade.
These Terms describe in detail the rights, responsibilities, obligations and costs of the sellers and buyers in
international trade, with particular reference to the transportation of goods. Some terms were designed with sea
vessels in mind while others were designed to be applicable to all modes.
The basic specifics that these terms address are
1. Cost
Who is responsible for the expenses involved in a shipment at a given point in a shipment's journey
2. Control
Who owns the goods at a given point in the journey
3. Liability
Who is responsible for paying damage to goods at a given point in a shipment transit

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 5

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


Types of Incoterms
There are 13 different terms divided into 4 categories. Each of these terms deals with different situations
involving the movement of goods.
The categories are:
1. E-Terms
Departure Terms where sellers responsibilities are fulfilled when goods are ready to depart from facilities. It has
minimum seller obligation. Here the seller makes the goods available to the buyer at the seller's own premises.
It has only one category EXW (Ex-Works)
(i.) Ex Works - EXW
Ex means from. Work means factory, mill or warehouse, which are the sellers premises. Ex- Works means the
seller's only responsibility is to make the goods available at the seller's premises, ie., the works or factory. The
seller is not responsible for loading the goods on the vehicle provided by the buyer unless otherwise agreed. The
buyer bears the full costs and risk involved in bringing the goods from there to the desired destination. The
buyer is responsible for all transportation costs, duties, and insurance, and accepts risk of loss of goods
immediately after the goods are purchased and placed outside the factory door. Ex-Works represents the
minimum obligation of the seller. Some manufacturers may use the term Ex Factory, which means the same as Ex
Works. The term is applicable to all modes of transport including multimodal.
2. F-Terms
Terms beginning with F refer to shipments where the primary cost of shipping is not paid for by the seller. Seller
has to deliver goods to a carrier appointed by buyer.
The main characteristics of the F terms are that the main carriage is not paid by the seller.
The terms in this category include:
(i.) Free Carrier - FCA
The Seller fulfills his/her obligations when the goods are delivered to carrier at a named point specified by buyer.
The risk of loss or damage to the goods is transferred from seller to buyer at that time. If the place chosen is the
seller's place of business, the seller must load the goods onto the transport vehicle; otherwise, the buyer is
responsible for the main carriage/freight, cargo insurance and other costs and risks. Has been designed to meet
the requirements of multi-modal transport such as containers, traffic by trailers and ferries.
(ii.) Free Alongside - FAS

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 6

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


Seller transports the goods from his place of business, clears goods for export and places goods alongside ship
on quay. The risk of loss then shifts to the buyer. Buyer is responsible for loading the goods onto the vessel and
for paying all costs involved in shipping the goods to the final destination. Applicable only to sea and inland
waterway.
(iii.) Free on Board - FOB
FOB states that the seller is responsible for delivering the goods from his place of business and loading them
onto the vessel at the port of shipment named in the sales agreement as well as clearing customs in the country
of export. As soon as the goods cross the ship's threshold the risk of loss is transferred to the buyer. The buyer
is responsible for all transportation and insurance costs from that point, and also for clearing customs in the
country of import. The seller pays the cost of loading the goods. Applicable only to sea and inland waterway
transport.
3. C-Terms
Terms beginning with C deal with the shipments where the seller pays for shipping, but without assuming the
risk of loss or damage to the goods or additional costs due to events occurring after shipment and dispatch. The
seller is also responsible for export customs clearance. Seller is not liable for risk/loss/damage to the goods
during shipping.
For the C terms, the main carriage is paid by the seller.
These terms include:
(i.) Cost and Freight - CFR
Requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the
risk of loss or damage to the goods as well as any cost increases are transferred to the buyer when the good
pass the ship's rail in the port of shipment. Insurance is the buyer's responsibility. The buyer is responsible for
the import customs clearance and other costs and risks.Applicable only to sea and inland waterway
(ii.) Cost, Insurance & Freight - CIF
Seller is responsible for delivering the goods onto the vessel of transport and clearing customs in the country of
export. He is also responsible for purchasing insurance with the buyer named as the beneficiary.Risk of loss
transfers to buyer as the goods cross the ship's rail. If these goods are damaged or stolen during international
transport, the buyer owns the goods and must file a claim based on insurance procured by the seller.
Applicable only to sea and inland waterway.
(iii.) Cost Paid To - CPT
Seller clears the goods for export, delivers them to the carrier and is responsible for carriage costs to the named
place of destination. Risk of loss or damage to the goods transfers to the buyer when the goods have been
delivered to the custody of the final carrier. Applicable to all modes of transport.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 7

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


(iv.) Carriage and Insurance paid - CIP
Delivery of goods and cargo insurance to the named place of destination at seller's expense. Applicable to all
modes of transport.
3. D-Terms
Shipper/seller responsibility ends when goods arrive at some specific point. Seller has to bear all costs and risks
needed to bring the goods to the country of destination. These are essentially arrival/delivery terms.
The D terms are:
(i.) Delivered at frontier - DAF
The seller is responsible for all costs involved in delivering the goods to the named point and place at the
frontier. The sellers obligations are fulfilled when the goods have arrived at the frontier but before the customs
border of the country named in the sales contract. Risk of loss transfers from seller to buyer at the frontier. The
buyer pays the cost and bears the risk of unloading the goods, clearing customs and transporting the goods to
the final destination. This term is applicable to all modes of transport.
(ii.) Delivered Ex-Ship - DES
The seller makes the goods available to the buyer on board the ship at the destination named in the sales
contract. Seller is responsible for all costs and risks involved in delivering the goods to a named port of
destination. Upon arrival, the goods are made available to buyer on board the vessel. The buyer must pay the
cost of unloading the goods and any customs duties. Applicable only to sea and inland waterway transport.
(iii.) Delivered Ex-Quay - DEQ
The seller makes the goods available to the buyer on the quay or wharf at the destination named in the sales
contract. Seller bears all costs and risks in transporting to the wharf (quay) at the port of destination. The buyer
must pay duties, clear customs, and pay cost/bear risk from that point onward. Applicable only to sea and inland
waterway transport.
(iv.) Delivery Duty Unpaid - DDU
The seller is responsible for all costs involved in delivering the goods to a named place of destination where the
goods are placed at the disposal of the buyer. The buyer assumes risks of loss at that point and must clear
customs, pay duties and provide inland transportation and insurance to the final destination. The term is
applicable to all modes of transport.
(v.) Delivery Duty Paid - DDP
Seller bears costs up to named point of destination including customs clearance at the country of import. Under
DDP, the seller literally provides door to door delivery, including customs clearance in the port of export and the
port of destination. Thus the seller bears the entire risk of loss until goods are delivered to the buyer's premises.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 8

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


The term is applicable to all modes of transport. Here, the seller is responsible for most of the expenses, which
include the cargo insurance,import customs clearance, and payment of customs duties and taxes at the buyer's
end, and the delivery of goods to the final point of destination, which is often the project site or buyer's premises.
The seller may opt not to insure the goods at his/her own risk.
Inco terms Classification Based on Transportation
1. Rules for Any Mode(s) of Transport
(i.) EXW Ex Works (named place of delivery)
(ii.) FCA Free Carrier (named place of delivery)
(iii.) CPT - Carriage Paid To (named place of destination)
(iv.) CIP Carriage and Insurance Paid to (named place of destination)
(v.) DAT Delivered at Terminal (named terminal at port or place of destination)
(vi.) DAP Delivered at Place (named place of destination)
(vii.) DDP Delivered Duty Paid (named place of destination)
2. Rules for Sea and Inland Waterway Transport
(i.) FAS Free alongside Ship (named port of shipment)
(ii.) FOB Free on Board (named port of shipment)
(iii.) CFR Cost and Freight (named port of destination)
(iv.) CIF Cost, Insurance and Freight (named port of destination)
Process Configuration Part-I
Step: 1 - Maintain Purchase Organization
SPRO - Enterprise Structure - Definition - Materials Management - Maintain Purchasing Organization.

Step: 2 - Create Purchasing Group

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 9

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


TCode: OME4
SPRO - Materials Management - Purchasing - Create Purchasing Group.

Step: 3 - Maintain Transportation Planning Point to Company Code.


TCode: OVXT
SPRO - Enterprise Structure - Definition - Logistics Execution - Maintain Transportation Planning Point.

Step: 3A - Assign Transportation planning point to company code.


Step: 4 - Assign Purchasing Organizations to Company Code.
TCode: OX01
SPRO - Enterprise Structure - Assignment - Materials management - Assign Purchasing Organization to Company Code.

Step: 5 - Assign Purchasing Organizations to Plant.


TCode: OX17
SPRO - Enterprise Structure - Assignment - Materials management - Assign Purchasing Organization to Plant.

Step: 6 Create Vendor Account Group

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 10

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


TCode: OMSG & Number Range OMSJ
SPRO - Financial Accounting - Accounts Receivables and Accounts Payables - Customer Accounts - Vendor Accounts Master Data - Preparations for Creating Vendor Master Data - Define Account Group.

Step: 8 Create Vendor


TCode: XK01

Step: 9 Define Modes of Transport

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 11

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


TCode: 0VTB
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Modes of
Transport

Step: 9A Define Shipping Types


TCode: 0VTA
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Shipping
Types
Select New Entries and Assign the Shipping Type (e.g. Road or Train) and Assign Mode of Transport (Mdtr) and Assign
Shipping type Procedure group.

Step: 9B Define Transportation Connection Point


TCode: 0VTD
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define
Transportation Connection Point.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 12

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Step: 9C Define Routes and Stages.


TCode: 0VTCS
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Routes
and Stages.
Select the New Entries and Enter the Details - Then Select the Routes stages and define

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 13

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Step: 9D Maintain Stages for all Routes.


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Maintain Stages
for all Routes.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 14

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Step: 10 ROUTE DETERMINATION - Define Transportation Zone


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define
Transportation Zone.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 15

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Step: 10A Maintain County and Transportation Zone for Shipping Point.
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Maintain County
and Transportation Zone for Shipping Point.

Step: 10B Define Transportation Groups


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define
Transportation Groups

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 16

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Step: 10D Maintain Route Determination


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Maintain Route
Determination.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 17

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

SHIPMENTS
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Shipments
Step: 11 Define Shipment Types
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Shipments - Define Shipment Types.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 18

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 19

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


Step: 12 In Customer master data.
In Address of General data. Enter the Transportation Zone id. And save you will get the route.
The system takes into account the following 4 conditions for determining the Route
a.) The country and the Departure Zone of the shipping point
b.) Shipping Conditions agreed in the sales document type or with the sold to party
c.) Transportation Group assigned to the material
d.) The country & Transportation Zone of the ship to party (in CMR)
Process Configuration Part-II
1) Maintain transportation planning point through Menu as follows:
SPRO - Enterprise Structure - Definition - Logistic Execution - Maintain transportation planning point
2) Defining modes of transport:
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define routes - Execution Define
modes of transport
Use the standard configuration like:

Shipping type

Description

01

Road

3) Define shipping types :


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Shipping types

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 20

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

PT

Description

Mdtr

STPG

01

Truck

01

0001

4) Define transportation connecting point :


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Connection points
You can copy the standard point and make it FB01 as departure zone and FB02 as destination zone.

5) Define routes and stages.


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Transportation routes and stages
Use the standard route and copy it as FB0001 and enter the departure zone and destination as what we created.

6) Defining Transportation Zone:

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 21

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Router determination
Use the standard transportation zone depending on the route so as for the example use 0000000003 - Southern Region

7) Maintain country or transportation zone for shipping points


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Transportation zone for shipping point
Assign Shipping point & route to the desired country.

8) Maintain route determination:


SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes Determination
Country of departure

Departure Zone

Country of destination

Destination Zone

And enter the data's needed like shipping condition 01, etc.
Maintain Transportation relevance for

shipping point

sales document type

delivery types.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 22

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

9) Now create shipping types


SPRO - Logistics Execution - Transportation - Shipments - Shipment
10) Define and assign traffic zones through menu as follows:
TCode: T_76
SPRO - Logistics Execution - Transportation - Shipment - Shipments cost - Functions Tariff Zones
Copy the standard to create TARIFF ZONE of own.
Then assign already created transportation planning point to the tariff zone
11) Define and assign pricing procedures
SPRO - Logistics Execution - Transportation - Shipment - Shipments cost procedures

Pricing

Price control

assign pricing

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 23

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 24

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 25

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 26

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

12) Assign purchasing data:


SPRO - Logistics Execution - Transportation - Shipment - Shipments cost - Settlement
13) Assignment
Assign Transportation planning point to combination of

shipping condition

purchase organization

purchasing group

plants

14) Define Automatic G/L account determination:


TCode: OMWB
SPRO - Logistics Execution - Transportation - Shipment - Shipment Costs - Settlement ()
Assign a GL account.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 27

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

15) Automatic determination of CO assignments:


TCode: OKB9
SPRO - Logistics Execution - Transportation - Shipment - Shipment Costs - Settlement - Determination of CO
Assignments.

16) Maintain shipping point address.


SPRO - Enterprise Structure - Logistics Execution - Definition - Define, copy, Delete, check shipping - Definition point
Maintain the address.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 28

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

17) Creating G/L account centrally.


TCode: FS00
SAP Easy Access - Financial - General Ledger - Master Records - Accounting - Accounting Individual - Processing
Centrally
18) Enter the G/L account for your company code

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 29

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

19) Create transportation condition records:


TCode: TK11
Logistics - Master data - Transportation - Shipment cost Price

Transportation Process Flow:


1. The system determines the pricing procedure for the shipment cost item-using

transportation planning point

service agent

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 30

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

shipment cost item category


2. Calculation Basis
3. Condition Record
4. Access sequence.
Step 1. Create Delivery Document
TCode: VL01N
With reference the sales order create a delivery using TCode - VL01N and pick the goods.
Step 2. Create Shipment Document
TCode: VT01N
After the status of the delivery is open for transportation planning, it is possible to create a shipment document to
schedule the transportation.
Now create a shipment using TCode - VT01N (SAP Easy Access - Logistics - Logistic Execution - Transportation Transportation Planning - Create - Single document)
and assign the delivery to the shipment document. Make sure to enter the carrier and other details before performing the
transportation planning and execution.
After the deliveries are scheduled by shipment and the shipment is executed, now it is time to maintain and close the
shipment document in order to record all relative information and ready for the shipment cost settlement.
So, save the shipment document and PGI for the delivery would be done automatically.

A shipment represents a physical goods movement between two or more locations.

For the system to create a shipment, shipping-relevant deliveries must exist.

You use Transportation Planning to group pending deliveries into shipments and then to perform the shipments.

The outbound delivery documents contain routes that the system calculates in route determination, and a
transportation planning date for the delivery.
Dynamic transportation planning is responsible for grouping together outbound deliveries into shipments that have at
least the same route, visit plan type and the same transportation planning date.
The following restrictions can be taken into account for a shipment in Dynamic Transportation Planning:

Weight

Volume

Variable capacity

Number of stops

Maximum duration

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 31

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Loading units
Step 3. Creating Shipment Cost Document & Cost Settlement
TCode: VI01 (SAP Easy Access - Logistics - Logistic Execution - Transportation - Shipment cost - Create - Single
document
After creation of shipment cost doc. The document is ready settling the Shipment cost.
Step 3.1. Use TCode VI02, enter shipment cost no. and press enter.
Step 3.2. Then go to Overview screen Freight cost items, Select the line item and double click it.
Step 3.3. Go as main menu: Item - Acc. assignment, you enter G/L acc. and cost center to which the transportation cost
will be posted.
On the Standard change, details - Freight cost items screen, then check the check box "Transfer", which means you will
transfer the relative transportation cost to FI/CO, in this case, the system should determined which Purchase Order will
used to settle the cost, so after you check the "Transfer" check box.
Press save button on the current screen.
Effects of Shipment cost settlement and related documents
After the shipment cost settled in shipment cost document, it has the following affects:

It creates a service entry sheet that refers to the purchase order determined.

It posts acceptance of services performed.

It creates an accounting document for the accruals.

Further subsequent documents are created in FI.


Generally process is
1) VL01N
2) VT01
3) VL02N - PGI
4) VI01
5) ML81N - Service Entry Sheet
6) MIRO - Invoice Verification

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 32

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT

Diagrammatic Representation of SD Transportation Process Flow


Shipping docs (VT01) are created before PGI
You cannot carry out transportation planning or creation of shipment after the goods issue has been executed. Once
goods issue is done it means that the material has left your premises so there is no need for a transportation planning
after it.
In case you need carry out the shipment documents at the end of the day you could just create the delivery documents
during the day and at end of the day create the shipment documents and the goods issue.

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 33

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


Route can be manually overwritten during a sales order processing. You can re-determine the route in the outbound
delivery based on weight (weight group) provided it is allowed in the configuration of the delivery type.
Scheduling takes into account the following times a.) Transit Time
b.) Loading Time
c.) Pick/Pack Time
d.) Transportation Lead/Planning Time.
The loading time and pick/pack time come from the shipping point whereas the transit time and transportation lead time
come from the route.
The system performs backward scheduling first to confirm the required quantity checking the material availability on the
material availability date. If the material availability date or the transportation planning date falls before the order date, the
system automatically carries out forward scheduling and will propose a future date. A delivery type can be customized to
carry out rescheduling if required during the delivery processing.
SHIPMENT OUTPUTS

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 34

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


The following reports are available in transportation processing:
Select Shipments: Planning
Select Shipments: Utilization of Capacity
Select Shipments: Free Capacity
Select Shipments: Shipment Completion
Select Shipments: Check-in
Displaying Transportation Change Documents
Report: Output for Shipments
Scales List
Shipment Costs List: Calculation
Shipment Costs List: Settlement

Please use my link to download the SAP articles:Dear friends


i herewith sending MM, SD, WM, CIN, PP...

SAP MM-WM
http://www.sapfunctional.com/WM/Configuration/Index.htm
http://www.sapfunctional.com/WM/WMQ1.htm
http://www.sapfunctional.com/MM/MMQ1.htm
http://www.mediafire.com/view/cxajoijh3j5s6es/Materials_Management_Step_by_Step_Configuration.docx
http://www.mediafire.com/view/33q7oslq3706oig/WM_Implementaion_Introduction.doc
http://www.mediafire.com/view/btrui8lnytcx8a6/WM_Training_documention_for_End_users.doc
http://www.mediafire.com/view/ym33706nci0iyv9/WM_Stock_Upload_Procedure.doc
http://www.mediafire.com/view/lcf45t12n4899nx/SAP_Workflow_for_MM_Purchase_order.docx
http://www.mediafire.com/view/au3y3bgas58m236/SAP_DECENTRALIZED_WAREHOUSE_SYSTEMS.docx

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 35

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


http://www.mediafire.com/view/03wud5d1nwjc56f/SAP_LEAN_WAREHOUSE_MANAEMENT.docx
http://www.mediafire.com/view/9kbas2mzygsn9b2/SAP_MM_Pricing_Procedure.docx
http://www.mediafire.com/view/n1w8zl1d7br5ea5/SAP_MM_BUSINESS_BLUE_PRINT_Sample.docx
http://www.mediafire.com/view/uujt3evdcyl69e2/Comparison_between_SAP_IM-_WM_Lean_WM__DWM_
_EWM.docx
http://www.mediafire.com/view/gq85534bj7a3lrz/Comparsion_between_SAP_WM_&_EWM.txt

SAP CIN
http://www.mediafire.com/view/twttbf5409s4zfr/MM_CIN_Configuration.doc
http://www.sapfunctional.com/MM/CIN/Index.htm

Please use my link to download the SAP MM WM SD PP articles:http://gvshivakkumar.blogspot.in/?view=flipcard


materials)

(it is my blog site.. here also we can download

SAP Module integration


http://www.mediafire.com/view/hdfm84rmkq7h495/SAP_INTEGRATION_BETWEEN_MM+SD+PP.docx
http://www.mediafire.com/view/29trlg8qtn8z0nj/SAP_FI-MM_and_FI-SD_Integration.docx

SAP SD

http://www.mediafire.com/view/3cq2e2etbq0uty5/SD_Blue_Print_Document_Sample.docx

SAP PP

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 36

SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT


http://www.mediafire.com/view/jsxdahajsaizaz9/SAP_kanBan_Process.doc
http://www.mediafire.com/view/zteht2ulkb8x2y8/SAP_Production_Planning_overview_for_New_SAP_Consult
ants.docx
http://www.mediafire.com/view/jsxdahajsaizaz9/SAP_kanBan_Process.doc

SAP SD & FI Flow


http://www.mediafire.com/view/2lxa6weo8zcys17/Interfacing_with_SAP.doc
http://www.mediafire.com/view/nfyzuld416a1fco/SD_FLOW_&_FI_FLOW.docx

SAP ASAP Methodology

http://www.mediafire.com/view/svz777fpr8w0o2e/Systematic_Approach_to_Run_SAP_ImplementationSupport-Maintenance_Project.docx

Interfaces
http://www.mediafire.com/view/2lxa6weo8zcys17/Interfacing_with_SAP.doc

Hope it is useful.... Thanking you...


Regards,
G.V.Shivakkumar

G.V.SHIVAKKUMAR - SAP MM WM LE Consultant

Email Venkatesansivakumar@yahoo.co.in
Page 37